Thursday, 7 Feb 2013

Written Answers Nos 41-60

Departmental Staff Recruitment

Questions (41)

Jonathan O'Brien

Question:

41. Deputy Jonathan O'Brien asked the Minister for Defence the outstanding vacancies in his Department on 31 December 2012 and his plans to fill these. [6122/13]

Written answers

Minister for Defence

The Government’s National Recovery Plan 2011-2014 sets out revised ceilings for public service staff numbers for the Department of Defence which are being achieved through the implementation of an Employment Control Framework (ECF). Since the introduction of the ECF, my Department has maintained its services through a range of measures, including restructuring, reprioritisation, realignment of business processes etc. My Department is required to meet an authorised staffing level of 354 for 2013 and has already met this target. I am confident that my Department will meet the challenge of delivering on its objectives by reprioritising work and streamlining business processes to achieve greater efficiencies despite the reduced numbers.

Question No. 42 answered with Question No. 12.

Capital Expenditure Programme

Questions (43)

Terence Flanagan

Question:

43. Deputy Terence Flanagan asked the Tánaiste and Minister for Foreign Affairs and Trade the total expenditure for 2012 on the capital programme at primary level in his Department. [6380/13]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

My Department does not operate any public capital programme. There is an administrative capital provision which is mainly directed towards ICT and accommodation provision. The Department’s total capital expenditure in 2012 came to €2.5 million, of which €2.28 million was in respect of Vote 28 (Foreign Affairs) and €237,000 in respect of Vote 27 (Irish Aid.)

Global Economic Forum

Questions (44)

Brendan Smith

Question:

44. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the proposals, if any, he has to host another Global Irish Economic Forum; and if he will make a statement on the matter. [6466/13]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

I have decided to convene a third Global Irish Economic Forum in October of this year. The decision follows Government consideration of the matter at its meeting on 29 January 2013. The Forums held in 2009 and 2011 and the related Global Irish Network have made a substantive contribution to the Government’s jobs and growth agenda and to the restoration of our international reputation. I believe that a further Forum would continue the process of deepening our strategic engagement with the Diaspora and make a further direct contribution to investment and trade promotion.

My Department is in discussions with other Departments and State Agencies as well as members of the Global Irish Network on the most appropriate structure and agenda for the event. The issue will also be discussed at the next meeting of the Global Irish network Advisory Group which will take place in Farmleigh on 11 February.

I will provide further details on the programme and format of the Forum when it becomes available.

Exports Growth

Questions (45)

Brendan Smith

Question:

45. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade if he will comment on the effects of exports to Britain during January due to the strengthening of the euro against sterling; the present outlook for such exports; and if he will make a statement on the matter. [6467/13]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

Figures for exports in January 2013 are not yet available. The most recent figures available, for November 2012, show merchandise exports to Britain from January to November 2012 totalling €14.132bn. This represents a 7% increase on exports during the same period in 2011. It is hoped that trade figures for the entire year of 2012 will be available shortly. I am not aware of any significant currency-related problems for Irish companies in the British market but I will keep the situation under review. Britain is Ireland’s largest trading partner and trade with Britain underpins the jobs and livelihoods of a significant proportion of our workforce. It is vital therefore that Ireland remains competitive in the British market, not just in terms of price, of which currency is one factor, but also in terms of quality and value.

The Embassy of Ireland in London and our Consulate General in Edinburgh work very closely with the State business development agencies, all of whom have representation in the British market. All are fully committed to supporting Irish business in the UK. Our Local Market Team sets out a strategic plan annually for promoting trade, tourism and investment and our Ambassador in London is responsible for ensuring its implementation and reporting back to the Export Trade Council, which I chair.

I am broadly optimistic about the outlook for Irish exports to Britain, a very significant market of 60 million people, located close to us and with many shared characteristics and minimal barriers to entry. Another important aspect of my Department’s work in supporting exports to the UK is our extensive engagement on promoting Ireland’s reputation and working with business networks, and with the Global Irish Network, to make contacts and develop opportunities for Irish business in the British market.

Scottish Independence

Questions (46)

Brendan Smith

Question:

46. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his views on Scottish membership of the European Union if their referendum result favours independence; and if he will make a statement on the matter. [6468/13]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

The people of Scotland will vote in a referendum in 2014 on the question of independence. Until then, any question about possible independence is hypothetical. If Scotland decides to become an independent country, the matter of EU membership would be for the government of Scotland to consider in the first instance and it is not appropriate for me to say what they should do. As part of the United Kingdom, Scotland has been in the European Union for the same length of time as Ireland - 40 years this year. Ireland and Scotland share interests, concerns and positions on a range of issues, many of which are dealt with at EU level. Ireland greatly values and welcomes Scotland's contribution and presence within the EU. It is strongly in our interest that this continue.

The Government continues to value its very positive relationship with the Scottish Government. Scotland remains a key partner for Ireland politically, economically and culturally. It is a priority of the Government to build on and deepen the relationship through bilateral engagements, through the work of the Irish Consulate General in Edinburgh, and through cooperation across a range of policy areas within the framework of the British-Irish Council.

Defence Forces Equipment

Questions (47)

Eoghan Murphy

Question:

47. Deputy Eoghan Murphy asked the Tánaiste and Minister for Foreign Affairs and Trade his position on the use of depleted uranium in war munitions. [6513/13]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

Ireland does not possess, and has never possessed, any weapons, armaments or ammunition containing depleted uranium. It is the firm policy of the Government that depleted uranium munitions will never be used by the Defence Forces. Ireland has voted in favour of the four resolutions on depleted uranium taken at the United Nations General Assembly since 2007, most recently in December 2012 when General Assembly Resolution 67/36 was supported by 155 States. These resolutions requested the UN Secretary-General to seek the views of member States and relevant international organisations on the effects of the use of armaments and ammunitions containing depleted uranium.

Research carried out to date by the relevant international organisations, including by the International Atomic Energy Agency (IAEA), the World Health Organisation (WHO) and the United Nations Environment Programme (UNEP), has concluded that depleted uranium does not pose a significant radiological risk. Other research has consistently returned inconclusive results.

Following consultations with the Department of Defence, Ireland provided a national report to the UN Secretary-General in 2009. This confirmed that, while there is no practical method of testing people who may have been exposed to depleted uranium, thorough medical examinations are carried out on all Defence Forces personnel returning from deployment overseas. These include tests intended to detect signs of those disease processes most likely to arise in cases of contamination with depleted uranium. To date, no evidence of an unusual incidence of disease has been found.

At present, there is no international framework or treaty relating to depleted uranium munitions and, consequently, no internationally agreed definition or prohibition. To achieve the political momentum required for implementing an international ban, a necessary condition would be to establish conclusively the negative impact of depleted uranium on human health and on the environment.

The Government supports further study and research by relevant international organisations and the scientific community and is not currently considering the introduction of legislation on depleted uranium weapons. A number of like-minded partners, including Austria, Canada, Finland, Germany, Italy, Japan and Spain, have adopted a similar approach.

Departmental Staff Rehiring

Questions (48)

Sandra McLellan

Question:

48. Deputy Sandra McLellan asked the Tánaiste and Minister for Foreign Affairs and Trade the number of retired public sector workers on pensions within his Department or any Office/Body under his aegis that have been re-instated in other positions within the public sector; and if he will make a statement on the matter. [6761/13]

Written answers

Tánaiste and Minister for Foreign Affairs and Trade

Details are set out in the following table of retired public sector officials who are currently contracted to my Department:

GRADE	POSITION HELD	DURATION
Assistant Secretary	Passport Appeals Officer	Three-year contract from 20 January 2012 to deal with appeals as and when they arise.
Counsellor	To assist in preparations for and for the period of the Irish Presidency of the European Union in January-June 2013	Contract from 1 May 2012 to 30 June 2013
Temporary Clerical Officer	Presidency position	Contract from 7 January to 12 July 2013
Temporary Clerical Officer	Presidency position	Contract from 17 September 2012 to 8 February 2013
First Secretary	Embassy Canberra (temporarily filling vacant post)	December 2012 – July 2013

The temporary Clerical Officers were recruited through an open competition organised by the Public Appointments Service (PAS).

My Department’s Development Cooperation Division also occasionally engages a small number of retired staff for short-duration specialist consultancy projects connected with the activities of Irish Aid.

The policy of my Department regarding the re-engagement of retired officials is to do so to the minimum extent possible. However, for certain once-off or short-duration projects, it is more productive and cost-effective to re-engage retired staff who already have the relevant expertise and experience than to go through a time-consuming and relatively expensive recruitment, induction and training process. Where it occurs, retired staff are usually re-engaged on a pension abatement basis, which means in effect that they continue to receive their pensions and are paid correspondingly reduced salaries by the Department.

The records currently available to my Department do not enable me to respond in full as regards retired public sector workers currently employed. However, under the provisions of the Public Service Pensions (Single Schemes & Other Provisions) Act 2012, new employees are required to declare if they are in receipt of, or entitled to, a pension from previous service in the public sector.

There are no State agencies, offices or bodies under the aegis of my Department.

Services for People with Disabilities

Questions (49)

Anthony Lawlor

Question:

49. Deputy Anthony Lawlor asked the Minister for Finance when a disabled person's grant has been allocated for an extension or improvements to a home to facilitate the physical requirements of disabled or elderly people, if these necessary works will be disregarded in the overall valuation of a property; and if he will make a statement on the matter. [6382/13]

Written answers

Minister for Finance

Liability for local property tax will be calculated based on the “chargeable value” of the residential property. Where a disabled person's grant has been allocated for an extension or improvements to a home to facilitate the physical requirements of disabled or elderly people, the Finance (Local Property Tax) Act 2012 does not currently allow any necessary works to be disregarded in the overall valuation of a property. Such extensions or improvements to a residence may not increase and may even reduce the market value of a property. Where a residential property is owned by a charity (approved by the Revenue Commissioners) or a public body and is used to provide accommodation and support to persons with disabilities or the elderly to enable them to live in the community, such properties will be exempt from the Local Property Tax.

Tax Rebates

Questions (50)

Anthony Lawlor

Question:

50. Deputy Anthony Lawlor asked the Minister for Finance the reason Revenue Commissioners take into account a bursary awarded by a college when calculating the amount of tax refunded to students who pay fees; and if he will make a statement on the matter. [6383/13]

Written answers

Minister for Finance

I am informed by the Revenue Commissioners that Section 473A of the Taxes Consolidation Act 1997 provides, subject to certain conditions, for tax relief at the standard rate of income tax (20%) for qualifying tuition fees paid by an individual in respect of a third level education course including a postgraduate course. I am further informed by the Revenue Commissioners that subsection (4) of Section 473A provides that tuition fees that are, or will be, met directly or indirectly by grants, scholarships or other means are deducted in arriving at the net tuition fees qualifying for tax relief.

In the absence of specific details of the case giving rise to the Deputy’s questions, the Revenue Commissioners are unable to explore the matter further. However, if the Deputy is prepared to forward to my officials details of the specific case giving rise to his Question, my officials will forward such details to the Revenue Commissioners to be examined.

Tax Reliefs Availability

Questions (51)

Róisín Shortall

Question:

51. Deputy Róisín Shortall asked the Minister for Finance if he will outline the tax reliefs currently available to support the funding of sports clubs. [6391/13]

Written answers

Minister for Finance

The tax and duty reliefs currently available to support the funding of sports clubs may be summarised as follows:

Exemption from Income Tax and Corporation Tax

Section 235 of the Taxes Consolidation Act 1997 (TCA) provides an Income Tax exemption to sporting bodies which have been approved by Revenue Commissioners on the basis that the body has been established and exists for the sole purpose of promoting athletic or amateur games or sports. The exemption extends to the amount of income applied to the sole purpose of promoting athletic or amateur games or sports.

Donations to certain sports bodies

Section 847A of the TCA provides tax relief for donations to certain sports bodies for funding of capital projects. The scheme is aimed at providing support to sports bodies located throughout the country engaged in projects of a capital nature such as the construction or refurbishment of sports facilities. In order for a capital project to qualify, it must be approved by the Minister for Transport, Tourism and Sport.

Stamp Duty

Section 82B of the Stamp Duties Consolidation Act 1999 provides for an exemption from stamp duty in respect of a conveyance, transfer or lease of land to certain sports bodies.

Capital Acquisitions Tax

A gift or inheritance which is taken for public or charitable purposes is exempt from Capital Acquisitions Tax. Any gift or inheritance left to a sports club for the provision of recreational facilities for the benefit of the community would normally qualify for this exemption.

Capital Gains Tax

Section 610 and Part 1 of Schedule 15 of the TCA provide an exemption from Capital Gains Tax (CGT) for capital gains accruing to any body established by statute for the principal purpose of promoting games or sports and any company wholly owned by such a body, to the extent that the sale proceeds giving rise to the gain have been, or will be, applied for that purpose.

Separately, section 610A of the TCA provides an exemption from CGT for capital gains accruing to certain sporting bodies where the sale proceeds giving rise to the gain are used for the sole purpose of promoting athletic or amateur games or sports.

Departmental Expenditure

Questions (52)

Michael McGrath

Question:

52. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 98 of 16 January 2013, if he will state the actual amounts spent from the pension fund levy and if he will provide the details of that expenditure to the end of December 2012; and the number of defined benefit funds affected by the levy which are in deficit and or have been closed since it was introduced. [6417/13]

Written answers

Minister for Finance

Amounts received from the pension fund levy are paid into the Exchequer central fund. Central fund is made up of tax revenue, non-tax revenue and borrowing. These funds are used in the day-to-day running of the State and it is therefore extremely difficult to quantify which specific funds are used for which purpose. That said, it is possible to cost the measures contained in the Jobs Initiative and examine their effect on the relevant sectors. As part of the Jobs Initiative , a new reduced rate of VAT at 9%, with effect from 1st of July 2011 until 31st December 2013, was introduced. This reduced rate targeted services and goods relating to the employment intensive tourism sector. This measure was estimated to cost the Exchequer €470 million in reduced VAT receipts by end 2012.

Upon assessment of this measure in late 2012, contained in the Medium Term Fiscal Statement, it was shown that there was significant pass through of the VAT reduction to tourism related goods and services. It can reasonably be inferred that this policy measure has contributed to the employment growth evident in the food and accommodations services sector since the measure was introduced.

One way to help job creation and improve our labour cost competitiveness is to ease the costs on employers of taking on new employees. Accordingly, the Jobs Initiative announced the lowering of employers PRSI for lower paid employment until end 2013. PRSI initiatives were estimated to cost over €303m in the two years to 2012.

In line with the Government’s priority of fostering growth and creating jobs, the Finance Bill 2012 gave effect to measures supporting employment for both the FDI and SME sectors. These measures included a special assignee relief programme to encourage foreign companies to invest in Ireland, a foreign earnings deduction to assist the expansion into emerging markets and changes to the R&D tax credit scheme to aid the SME sector. These measures are estimated to cost the Exchequer €16 million on a yearly basis.

As the Deputy is aware, a significant portion of the policies contained in the Jobs Initiative related to labour market activation and capital projects. Monies spent under these schemes are a matter for my colleagues, the Minister for Education and Skills and the Minister for Public Expenditure and Reform.

Finally, I would like to emphasise the point that the impact of the Jobs Initiative, as specified on announcement day, will be budgetary neutral.

I do not have the information on Defined Benefit pension funds requested by the Deputy as these schemes or other occupational pension schemes are not required to report to my Department. The regulatory authority for occupational pension schemes is the Pensions Board, which operates under the aegis of the Minister for Social Protection.

Pension Provisions

Questions (53)

Michael McGrath

Question:

53. Deputy Michael McGrath asked the Minister for Finance if he will state if the defined benefit pension funds of the universities are subject to the pension fund levy; and the arrangements in place to compensate those retiring at 65 following the removal of the transition pension to which they have contributed. [6418/13]

Written answers

Minister for Finance

While the liabilities and terms and conditions of the pension schemes to which the Deputy refers are primarily matters of responsibility of other Ministers, I am given to understand that the position on the issues raised in his question are as follows:

Pension Fund Levy

The pension fund levy applies at a rate of 0.6% per annum to the market value, on the valuation date, of assets under management in pension funds and pension plans approved under Irish tax legislation. However, as the University defined benefit pension funds were transferred to the National Pensions Reserve Fund under the Financial Measures (Miscellaneous Provisions) Act 2009, the pension fund levy does not apply.

Transition Pension

On the assumption that the Deputy is referring to public service pension arrangements, the position is that public servants who are due to retire aged 65 in January 2014 will be able to draw their occupational public service pension at age 65.

The changes regarding State (Transition) Pension will have no impact on public servants who are on modified social insurance. However, for those public servants who are fully insured, their public service pensions are, like many occupational pension schemes, usually co-ordinated with Social Welfare benefits. This means the occupational pension paid is based on the assumption that the pensioner also receives the State Pension (Transition or Contributory). Where neither of those pensions is payable, a discretionary supplementary pension may be payable in most public service pension schemes to bridge the gap.

One of the conditions for payment of a supplementary pension is that the pensioner, through no fault of their own, does not qualify for Social Welfare benefit or qualifies at less than the maximum personal rate. It is therefore necessary to claim any available Social Welfare benefits in order to receive a supplementary pension.

Proposed Legislation

Questions (54)

Eoghan Murphy

Question:

54. Deputy Eoghan Murphy asked the Minister for Finance if he will consider transporting elements of the Nuclear Weapons (Prohibitions of Investments) Bill 2012 into one of the forthcoming Finance Acts thereby prohibiting investment of public moneys in companies that are involved in the manufacture of nuclear weapons, their components or delivery systems and compelling the National Pension Reserve Fund to divest circa €10 million of public money that the fund currently has invested in such companies. [6427/13]

Written answers

Minister for Finance

As the Deputy will be aware, the Government announced the establishment of the Strategic Investment Fund (SIF) in September 2011. The SIF will channel commercial investment from the National Pensions Reserve Fund (NPRF) towards productive investment in the Irish economy, following appropriate changes to the legislation under which the NPRF operates. As well as money from the NPRF, the SIF will seek matching commercial investment from private investors and target investment in areas of strategic significance to the future of the Irish economy. In the light of these proposed changes, I would not intend at this time to bring forward proposals for legislation to amend the investment mandate of the NPRF in the way envisaged by the Deputy.

Personal Debt

Questions (55, 56)

Michael McGrath

Question:

55. Deputy Michael McGrath asked the Minister for Finance the discussions he has had with the Irish Banking Federation in relation to its recently issued protocols on unsecured debt; his views that the protocol will be of assistance in dealing with mortgage arrears; and if he will make a statement on the matter. [6458/13]

Michael McGrath

Question:

56. Deputy Michael McGrath asked the Minister for Finance his views that credit unions, that are outside the terms of the recently issued protocol by the Irish Banking Federation in relation to unsecured debt, will be adversely impacted by their application; and if he will make a statement on the matter. [6459/13]

Written answers

Minister for Finance

I propose to take Questions Nos. 55 and 56 together.

I note the launch of a protocol on unsecured credit which was an initiative of the IBF.

Initiatives such as the IBF protocol can certainly assist in encouraging and facilitating creditors and debtors to engage with one another in an open, constructive manner to address debt arrears and genuine debt difficulty. This can resolve positions of over indebtedness in a way that is as fair as possible to both the debtor and creditors and will be a beneficial voluntary addition to the broader debt resolution framework.

However, any voluntary initiative or bilateral approach can only be successful if all parties are in agreement. Where this does not arise, it is necessary to have an effective statutory insolvency process. Therefore voluntary initiatives, while welcome, do not remove the need for the insolvency reforms as provided for in the recent Personal Insolvency Act. As the Deputy is aware, under the legislation an insolvent debtor can, through the personal insolvency practitioner, formally make a Debt Settlement Arrangement or a Personal Insolvency Arrangement proposal to their creditors, which may include credit unions. This will allow for an efficient framework whereby the creditors can engage with and consider a proposal from the debtor to deal with their insolvent circumstances short of the full judicial bankruptcy process.

Government-Church Dialogue

Questions (57)

Michael McGrath

Question:

57. Deputy Michael McGrath asked the Minister for Finance the date of meetings he has held with the European Central Bank president in respect of the Irish Bank Resolution Corporation promissory note; and if he will make a statement on the matter. [6460/13]

Written answers

Minister for Finance

The Minister speaks regularly with President Draghi, including on the margins of Eurogroups/Ecofins and this topic is regularly covered – there were some 15 Eurogroups or Ecofins or both in 2012 and there has been one this year to date. Furthermore there were also three scheduled meetings with President Draghi in Europe during 2012. I am satisfied that every available and appropriate opportunity to advance Ireland’s position in relation to legacy bank debt with our European partners is being availed of and that every effort to maintain the issue of the Irish bank debt at the top of the European agenda is being made.

Tax Code

Questions (58)

Joe McHugh

Question:

58. Deputy Joe McHugh asked the Minister for Finance his views regarding the international guidelines that govern online firms in respect of corporation tax; if this matter is a subject of discussion at the European Council; and if he will make a statement on the matter. [6489/13]

Written answers

Minister for Finance

The tax practices of multinational corporations, online or otherwise, are currently the focus of work being carried out by a number of international oganisations, in particular the OECD and the EU. There is a broad consensus that responses to this issue need international coordination in order to be effective. Coordination is needed because the problems that arise are typically as a result of the interaction between different tax regimes rather than the law or practice of any one country. In March 2012 the European Council called on the Council and the Commission to suggest ways to improve the fight against tax fraud and tax evasion in the context of Member States budget’s being under pressure. The Commission’s initial response was a Communication adopted in June 2012 which outlined how compliance could be improved and fraud and evasion reduced. The Commission also announced that it would publish an action plan on the suggestions in the Communication and a further complementary initiative on tax havens, non cooperative jurisdictions and aggressive tax planning. This was published on the 6th December and will be discussed at the Council Working Party on Tax Questions during the Irish Presidency.

During the Presidency Ireland plans to devote a number of official-level meetings to this issue. I can confirm to the Deputy that this package of measures will be a priority for the Irish Presidency and that we expect to receive the Council’s backing for the Commission’s package during Ireland’s term.

Pension Provisions

Questions (59)

Patrick O'Donovan

Question:

59. Deputy Patrick O'Donovan asked the Minister for Finance if the AVC withdrawal scheme introduced in Budget 2013 will cover PRSAs or if it is just occupational pensions; if it does not include PRSAs, will it be included; and if he will make a statement on the matter. [6523/13]

Written answers

Minister for Finance

In my Budget 2013 speech, I announced that I would make provision in Finance Bill 2013 for persons making Additional Voluntary Contributions (AVCs) used to supplement their main scheme retirement benefits to withdraw up to 30% of the value of those contributions. The provisions will not apply to contributions made to a PRSA (other than additional voluntary contributions made by a scheme member to an AVC-PRSA product). Any amounts withdrawn will be subject to tax at the individual’s marginal rate. The option will be available for 3 years from the passing of the Finance Bill. This is a restricted measure which will enable rather than incentivize certain individuals to access part of their pension savings beyond their regular or compulsory pension contributions. I do not wish to damage future pension provision and it is important that individuals continue to provide for their retirement. For these reasons, I have no plans to extend the measure beyond AVCs.

Property Taxation Application

Questions (60)

Michael Healy-Rae

Question:

60. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence (details supplied) regarding the property tax; and if he will make a statement on the matter. [6525/13]

Written answers

Minister for Finance

The Local Property Tax will be based on the market value of residential properties as at 1 May 2013 and will be self-assessed by liable persons. The Government agreed with the recommendation of the Inter-Departmental Expert Group on the Design of a property tax (the “Thornhill group”) that the Local Property Tax should be centered on the principles of equity, transparency and simplicity. In terms of these principles, it was also considered that a universal liability should apply to all owners of residential property with a limited number of exemptions, in order to keep the rate of the tax as low as was possible. In making its recommendations for exemptions and for deferrals of Local Property Tax (LPT), the Thornhill group had regard to the following criteria:

- Ability to pay

- Reliefs create costs which have to be paid for, either by taxpayers who do not benefit from the relief, or by reductions in public expenditure

- Reliefs should be designed to address clear economic and social policy needs

- Care needs to be taken in designing relief to ensure they are targeted based on need, and there are not unintended and inequitably distributed gains

- The Local Property Tax is intended to be a tax on the benefit from ownership of a residential property

- Such residential properties have monetary and non-monetary values which are independent of incomes

- And that the Local Property Tax is not assessed on incomes.

The Finance (Local Property Tax) Act 2012 contains provisions for deferrals for individuals whose income is under certain limits. These provisions are targeted at cases of need, and have reference to income stressed home owners, allowing enhanced deferrals where there is low income and liability to mortgage interest.

Part 12 of the Act sets out the conditions for deferral of the charge. Where the residential property is the sole or main residence of a liable person and their estimated gross income from all sources does not exceed €15,000 for a single person, or €25,000 for a couple, during the year covered by the return, they will be eligible to apply for full deferral of the LPT charge.

In addition, for income stressed owner-occupiers who have an outstanding mortgage, an adjusted gross income limit will apply. In these cases, the income thresholds of €15,000 or €25,000 may be increased by 80% of the annual mortgage interest payments. This type of deferral is available until the end of 2017.

Owner-occupiers may be eligible to apply for partial deferral where the gross income from all sources is less than €25,000 in the case of a single person and €35,000 in the case of a couple. For income stressed owner-occupiers who have an outstanding mortgage, these thresholds may also be increased by 80% of the annual mortgage interest payments. In these cases the owner-occupier will qualify for deferrals of 50% of the LPT liability and the balance of 50% of the tax must be paid.

Deferrals of LPT will attract an interest charge of 4%, simple interest, which is half of the Revenue default rate. Any amount deferred will be a relatively small part of the overall value of the property, even where the deferral lasts for a number of years.

The Revenue Commissioners will be responsible for the administration of the Local Property Tax and will be issuing guidelines to homeowners in the near future, including details of how to claim a deferral of the tax.

In order to facilitate liable persons and assist with budgeting for payment of the new tax, a range of payment options will be available to pay LPT, including the option to pay LPT in equal instalments. Such instalment payments can be made by way of deduction at source from employment or occupational pension income or from certain payments from the Departments of Social Protection and Agriculture, Food and the Marine. Instalment payments may also be made by direct debit from bank accounts, or by payment in cash through approved service providers. Revenue will announce details of payment options as part of their forthcoming information campaign.

The Household Charge, which was mentioned in the correspondence forwarded by the Deputy, was a matter for the Minister for the Environment, Community and Local Government and has ceased with effect from 1 January 2013.